India's Foreign Exchange Reserves Dip by USD 207 Mn After Two Weeks of Growth

New Delhi, Feb 8 (KNN) Foreign exchange reserves in India decreased by USD 207 million for the week ending January 31, following two consecutive weeks of gains. The previous week had seen a substantial increase of USD 5.574 billion, bringing the total reserves to USD 629.557 billion. 

This recent decline comes amid a broader downward trend observed over the past few weeks, attributed to currency revaluation effects and the Reserve Bank of India's interventions to stabilise the rupee in foreign exchange markets.

The reserves had reached their peak at USD 704.885 billion in late September 2024, marking a historic high for the country. According to data released by the Reserve Bank of India on Friday, foreign currency assets, which constitute the largest component of the reserves, fell by USD 207 million to USD 537.684 billion. 

These assets, denominated in US dollars, reflect the fluctuations in the value of non-US currencies such as the euro, pound, and yen held within the reserves.

In contrast to the decline in foreign currency assets, gold reserves showed significant growth, increasing by USD 1.242 billion to reach USD 70.893 billion during the reporting period. 

The Special Drawing Rights (SDRs) also saw a modest increase of USD 29 million, bringing the total to USD 17.889 billion. However, India's reserve position with the International Monetary Fund (IMF) experienced a slight reduction of USD 14 million, settling at USD 4.141 billion for the week.

(KNN Bureau)